Is saving 30% of my self employed income good to cover Federal and Utah State tax?
I have been trying to research this on my own but feel I am not finding my answer and I don't have money to spend on a CPA or any other tax person to ask. I must know before I quit my job and start working for myself. Any help would be great!
It depends on how much you make since it is on a sliding scale. Utah starts at 5%, Fica is 15.3% and Federal taxes at least 15% so 36% would be closer. You will make quarterly estimated tax payments. Of course at the rate that Congress is spending,
"Do we need to phase out loopholes and deductions and get rid of corporate welfare? Absolutely we do. And you raise that and you reinvest it back in the tax code. That's exactly what I would do. We did that in the state of Utah, creating effectively a flat tax. And you buy down the rate. You broaden the base, buy down the rate."